US Treasury building in Washington, DC

WASHINGTON, July 01. /ITAR-TASS/. The US still has no plans to restart talks with Moscow on Russian banks joining the Foreign Account Tax Compliance Act (FATCA) as the the law comes into effect on Tuesday, a US Treasury representative said during a news conference.

“We have suspended our talks on FATCA with Russia, and they are still being suspended,” he said.

Under FATCA terms, banks must send information about US clients and their transactions to the Internal Revenue Service (IRS) to avoid tax fraud committed by US citizens. There is an alternative option which includes banks’ reports to national governments instead of the US tax service, provided that the country has an intergovernmental agreement with the US.

In April, the US halted talks with Russia on its banks joining the act, and in May Assistant Secretary of the US Treasury Daniel Glazer said that the American government is not considering restarting talks with Russia due to political controversies over the Ukrainian crisis.